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NIFTY 500 Analysis with EPS Yardstick

Journal of commerce and accounting research, 2020-10, Vol.9 (4), p.55

Copyright Publishing India Group 2020 ;ISSN: 2277-2146 ;EISSN: 2320-4990

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  • Title:
    NIFTY 500 Analysis with EPS Yardstick
  • Author: Dsouza, Suzan ; Bhatia, Dharmesh ; Dey, Prithviraj
  • Subjects: Earnings per share ; Financial ratios ; Growth rate
  • Is Part Of: Journal of commerce and accounting research, 2020-10, Vol.9 (4), p.55
  • Description: In this research paper, we identify the relationship between the sectoral constitution of the Nifty 500 population and the 50 top-performing companies under Nifty 500. EPS, as a financial ratio, has been comprehensively used in this study. The financial statements of the selected Nifty 500 companies are used to calculate the relevant financial ratio. The EPS of the companies are expressed in terms of growth rate (R), where R = CAGR expressed to measure the EPS growth rate of each company in the Nifty 500. Rm is the average of all the EPS growth rates of the Nifty 500 companies, expressed as a benchmark of Nifty 500. R-Rm is the deviation between R and Rm. The relevant secondary data, which includes five years’ observations, have been extracted from the Money Control and NSE database for the period 2012 to 2017. Based on the overall analysis, the study revealed that the sectors among the 50 top-performing companies of Nifty 500, which have the least deviation compared to the benchmark of Nifty 500, are the sectors with a majority proportion in the Nifty 500 population. The sectoral constitutions of the 50 top-performing companies under Nifty 500 are significantly different compared to the 50 bottom-performing companies. When we compare the internal sectoral proportions among the various sectors of the 50 top-performing companies there is no substantial difference among them. However, the internal sectoral proportions among the various sectors of the 50 bottom-performing companies have a significant difference among them.
  • Publisher: New Delhi: Publishing India Group
  • Language: English
  • Identifier: ISSN: 2277-2146
    EISSN: 2320-4990
  • Source: ProQuest Central

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